Milwaukee County

McGee wanted cash, jury is told

Store owners say donation for beer license was norm

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Joudeh “Joe�? Hamed and Gurinder “Sonny�? Singh both testified Tuesday that they wanted to sell their respective central-city corner grocery stores in the summer of 2006 and transfer the beer and liquor license to the new owner.

And both said they needed the blessing of 6th District Ald. Michael McGee for the sales to go through. Each went to McGee, and in both cases, they said, McGee said they needed to donate $2,000 to “the community�? to gain his support for the license transfer. Prosecutors say “the community�? really means McGee’s own pocket.

Hamed agreed to the price, and the license was transferred. Singh didn’t pay, and the sale fizzled.

Singh said he withdrew the request because he knew it was going nowhere without McGee’s approval. He said he later sold the store after McGee was arrested and no longer able to influence licenses.

The store owners were among four witnesses to testify in the second day of McGee’s federal extortion trial. U.S. District Judge Charles Clevert abruptly halted action after the lunch break, saying the trial would resume at 8:30 today. Clevert didn’t give a reason but said it was unavoidable.

McGee, 38, faces up to 30 years in prison if convicted on federal counts of bribery, extortion and wiring $15,000 without filing required paperwork. McGee, who lost his bid for re-election in April, is charged separately in state court with conspiring to have a man beaten, vote-buying and other charges. His trial there is pending.

In Tuesday’s testimony, Mohamed Elmaki, who wanted to buy Singh’s store, said he was so enraged by McGee’s demand for money that he had to be held back from the alderman during a meeting.

“I said, ‘You are part of the community as an elected official. You shouldn’t be asking for money,’ �? Elmaki testified. “I told him, ‘In the future if I sell my store, will I have to go through this?’ �?

Hamed, 50, testified that in 2006 he was ready to sell his store, Davis and Sons Liquor, 3562 N. King Drive, for $292,000. Sales papers were signed, but Hamed said he knew he needed McGee’s approval under a concept he knows as “aldermanic privilege.�?

“The aldermen have authority over licensing and zoning,�? Hamed said.

Hamed and the buyer met with McGee in June 2006 at an east side restaurant. McGee said the license change would cost “around $5,000,�? Hamed testified.

The buyer gave McGee $1,000, but there was still no action on the license, said Hamed, who added that he had no problems transferring the license when he bought the store in 2000, before McGee was alderman.

Hamed called McGee. A man named Dennis Walton, who is being sought for questioning by the FBI, called back and set up a meeting at which Hamed said he gave Walton $1,300 cash. Walton, called McGee’s “bag man�? by prosecutors, called Hamed back and demanded $700 more, which Hamed gave him, he said. The license was approved a short time later, he said.

In the second example, Singh, 29, said he wanted to sell his store, Palmer Foods, 200 E. Center St., in summer 2006 to Elmaki. The two drew up an agreement, and then Singh went to McGee to get his approval to have the beer license transferred, Singh said.

A meeting was held, and Singh and Elmaki said they both gave McGee checks for $150. At a second meeting, McGee asked for $2,000, Singh said.

Singh said $2,000 was too much for him to pay, and he withdrew the request. Elmaki said McGee later called him and asked if he was telling people that the alderman asked for $2,500 to approve the license change. Elmaki said no, and that he wanted his $150 back. Singh said he later paid him $75 out of his own money.

In cross-examination of witnesses, McGee’s defense attorney Calvin Malone highlighted that Singh lied to the FBI when first questioned about bribes to McGee. Singh said he lied in part because he had been recently robbed and was scared. He said he didn’t remember several of the things he told the FBI.

Assistant U.S. Attorney Joseph Wall asked Singh if he was afraid of retaliation from McGee or his supporters. “Yeah, maybe,�? he said. But on cross-examination, he said he had never been threatened.

About John Diedrich

John Diedrich writes about crime, federal issues, ultimate fighting and guns. His investigations have been honored with various national awards including a George Polk Award for reporting on rogue gun stores and an IRE award for exposing botched undercover federal stings.